If you’ve already earned your undergraduate degree and are now planning to head back for graduate school—whether it’s a part-time MBA, a master’s in education, or an advanced certificate, this is for you.
You’ve done college once. You know the costs, the time commitment, and the pressure of balancing school with everything else. Maybe you’re working full-time, managing rent or a mortgage, or paying off student loans. And now, you’re seriously weighing whether another degree is worth it—and how to afford it.
Here’s one tool that can help: a 529 account. It’s not just for kids or parents. It’s a smart, flexible way to save for your own education—and it could help reduce your out-of-pocket costs for grad school.
Why a 529 Account Works for Grad School
A 529 account is a tax-advantaged savings account designed to help cover education
expenses. While many people associate it with saving for a child’s college tuition, it’s also a powerful tool for adults returning to school.
Here’s how it can help:
- Tax-Free Growth: Money in a 529 account grows tax-free, and you won’t pay taxes when you withdraw it for qualified education expenses.
- Qualified Expenses Include:
- Graduate school tuition
- Required books and course materials
- Fees and lab costs
- Required software and technology
- Internet access (if required for coursework)
- State Tax Benefits: In Virginia and many other states, you may be eligible for a state income tax deduction on your contributions.
- You’re in Control: You can open a 529 account in your own name, contribute on your own schedule, and use the funds when you’re ready.
What to Do Next
If you’re planning to start grad school soon—or even just exploring your options, here are a few steps to take now:
- Open a 529 Account in Your Name
If your parents opened one for you years ago, that’s great—but you can also open your own. With Invest529, it’s quick and easy to set up an account where you’re both the owner and the beneficiary. (link to more info)
2. Estimate Your Costs
Use Invest529’s cost calculator to get a realistic picture of your program’s cost.
Look at tuition, fees, books, and any required equipment or software. Knowing your target can help you set a savings goal for your timeline. (link to calculator)
3. Start Contributing—Even a Little
You don’t need to save the full amount upfront. Start with what you can—$50 a month, or even less. Setting up automatic contributions can help you build momentum without having to think about it.
4. Use It Strategically
Once enrolled, you can use your 529 account to pay for qualified expenses directly. Just be sure to keep receipts and documentation for anything you withdraw.
Why Saving Now Still Matters
Even if you’re starting school soon, saving now can still help. Every dollar you contribute to a 529 account is a dollar you may not have to borrow later. And if you’re spacing out your program over a few years, like many part-time or online students, you’ll have time to build up savings between semesters.
Plus, using a 529 account can help you stay organized. Instead of pulling from your emergency fund or racking up credit card debt, you’ll have a dedicated account just for your education.
Take the First Step
Going back to school is a big decision, and a smart one. Whether advancing your career, switching fields, or pursuing a long-held goal, a 529 account can help you do it with more confidence and less financial stress.
So, if grad school is on your horizon, take a few minutes to explore how a 529 account can support your next chapter. Open an account, run the numbers, and start saving. Your future self will thank you!
About the author:
Ivey Brooke is the marketing intern for Commonwealth Savers, formerly known as Virginia 529.